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During Prime Minister’s Questions Mr Cameron unveiled a £125million package to increase the ex-gratia payments to those affected.

He told MPs: “Last year I apologised to the victims on behalf of the British Government for something that should never have happened. Today I am proud to provide them with the support that they deserve.”

Mr Cameron said the “much fairer and more comprehensive scheme” will guarantee all those infected will, for the first time, receive a regular annual payment.

EXPRESS

This paper has been crusading on behalf of the victims of the worst treatment disaster in NHS histor

This is the greatest treatment disaster in the history of the NHS and it is a national scandal that decades later those affected are still fighting for justice.

Diana Johnson

He praised two of his constituents, David Leadbetter and Matthew Davis, for making their case to him on the issue during his local surgeries in Witney, Oxfordshire.

He added: “I know not everyone will be fully satisfied with what’s being done but it does show our democracy working and compassion in replying to this terrible problem.”

Sources close to Mr Cameron said he was prompted to act after hearing moving stories from those who had been infected with deadly diseases through contaminated blood.

“He made a promise at the dispatch box shortly before the election that he would take action in the next Parliament if he was still PM and he felt it was his duty to honour that commitment,” the source said. It is understood the policy was rushed through in time for Mr Cameron’s departure.

EXPRESS

Almost 5,000 patients were infected with Hepatitis C and HIV through NHS blood products in the 1970s

Labour MP Diana Johnson, co-chairwoman of the All-Party Parliamentary Group on Contaminated Blood, said: “It was fitting David Cameron made the announcement on contaminated blood as one of his final acts as prime minister.

“This is the greatest treatment disaster in the history of the NHS and it is a national scandal that decades later those affected are still fighting for justice.”

However, she acknowledged many of the victims would be unhappy with the settlement: “This announcement doesn’t provide the closure all those affected desperately need and will leave many of those affected still struggling,” she said. Critics of the deal claim the package unveiled for victims in Scotland earlier this year appears to be more generous.

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Sources close to Mr Cameron said he was prompted to act after hearing moving stories from those who

Liz Carroll at the Haemophilia Society said: “It is an improvement on the proposals in the consultation. However, it still falls short of the support the affected community deserve and require.”

Mr Leadbetter, who was mentioned in Mr Cameron’s speech and has campaigned on the issue for six years, said the fight would go on.

He said the amount of money pledged was “not great” and was disappointed the cash was still part of ex-gratia payments. “We will never get proper compensation until a full inquiry is held and fault found,” he said.